Life Insurance Premium Calculator

You may be confused on how to purchase a life insurance policy and for how much to purchase, then you need the help of a life insurance premium calculator to assist you in this case as it acts as the best guide. Life insurance premium calculator is a tool which determines the advantages of insurance policies. It is a user-friendly tool that after computations and calculations provides estimation about the required policy.

What is Life Insurance Calculator?

Life insurance premium calculator is a specially designed financial tool which helps the policy buyers to calculate the coverage amount they need while buying the life insurance policy. With the help of life insurance calculator, the insurance buyers can compare and analyze different plans online and choose the most comprehensive plan according to their requirement and suitability.

 With various features like calculator, graph, schedule, and summary, life insurance calculator helps the insurance seekers to make the exact estimation of the insurance need. The life insurance premium calculator helps the customer to determine the exact premium amount they require to pay to the insurance company.

Types of Life Insurance Premium Calculator

In order to cater to the requirements of the insurance seekers, there are different types of premium calculators available in the market. Let us take a look at it.

Term Life Insurance Premium Calculator: 

This term insurance calculator helps you compute the premium that you need to pay at a specific age for a specific coverage that is required by you. 

Investment Plan Premium Calculator: 

This life insurance premium calculator helps to analyze your investments in an insurance policy and gives you growth projections. 

Pension Plan Premium Calculator: 

This calculator helps you compute how much you need to invest today to earn the desired amount of steady pension in your retirement years.  

Child Life Insurance Premium Calculator: 

A child plan premium calculator helps you to analyze and compute how much money that you have to pay to get adequate funding for your child for education, marriage, and other miscellaneous expenses. 

How to Calculate Life Insurance Premium?

In simple words, life insurance plans provide financial protection to the family, in the event of decease of the insured. Besides this, life insurance policies also work as a saving instrument, retirement fund, endowment plan, investment plan, etc. Moreover, life insurance plans also come with the perk of tax benefit.  

As having a life insurance policy is very important for paying the premium of the policy is equally important in order to avail the continues benefit of the plan. The policyholder can pay the premiums of the policy in different modes like monthly, half-yearly, quarterly and yearly. The policy buyers can make use of life insurance calculator in order to get the approximate premium rate of the policy.

The premium rate of the policy is determined as per the chosen plan and according to the credentials of the applicant. Generally, the premium rate for the young insurance buyers is less as compared to the person who is in his/her 50s. This is because young buyers are considered healthy as compared and tend to pose less risk to the insurance company as compared to the aged insurance buyers. Moreover, there are many different factors that determine the rate of the premium of the policy.

The insurance seekers can make use of life insurance premium calculator in order to avail the most beneficial plan at an affordable premium rate. However, while using the premium calculator the policyholders are required to provide the following information.

  • Applicant age
  • Plan Name
  • Premium Frequency
  • Sum assured
  • Gender
  • Tenure
  • Date of birth
  • Rider
  • Proposer’s name

After entering these details, the insured will get the approximate premium amount.

How to Use Life Insurance Premium Calculator?

One just needs to enter the important information like age, total asset, retirement age, income, etc. while calculating the premium rate with the help of life insurance premium calculator. By entering the information the policy buyers can determine the exact sum assured amount they will need in order to provide financial protection to the family. The life insurance calculator can be used in three simple steps.

Step1- Firstly, the insurance buyer needs to enter the personal information such as annual income, date of birth, number of children, marital status, coverage amount, etc.

Step2- After entering all the personal information, the insurance buyer will be required to enter sum assured amount and policy tenure. They will also require entering the detail, whether they want the final payout as a lump sum or as monthly income. After clicking the ok button the person can see the result on the display.

Step3- In the final step, the life insurance premium calculator will suggest some lucrative life insurance policies as per the information entered by the individual. All one need to do is to make a fair comparison of the plans and zero in on the most beneficial plan.

Life Insurance Premium Payment Options

The frequency at which the renewal premiums are payable is called the premium payment frequency. The Life Insurance Premium Payment Options can be annual, half-yearly, quarterly and monthly. The insurance buyers can determine the premium rate of the policy with the help of life insurance calculator. Insurance companies give a variety of Life Insurance Premium Payment Options to their customers to pay their premium on time. Some of the Life Insurance Premium Payment Options are as follows:

• Walking into the insurer‘s Office and making payment by Cash / DD / Cheque, Credit Card, Electronic Clearance System and Direct Debit Facility
• Walk into any Bank Branch Partner of the Insurer
• Online payment through net banking and bill junction
• Electronic Clearing Services (ECS)
• Standing Instruction to your bank
• Payment through Bill Desk
• Electronic Bill Payment
• Payment through Visa Bill Pay

Life Insurance Premium Rates

Life insurance premium rates determined by the life insurance calculator are the cost that you pay for buying an insurance policy. It is calculated by specialists known as actuaries. These life insurance premium rates should be adequate and equitable to payout the policy benefits and depend on the degree of risk covered by the company. Life insurance premium rates are governed by the following factors:>

  • Mortality Rate: is an insurer‘s anticipation of deaths amongst a particular group of insured lives at certain ages.
  • Investment earnings: Premiums are the primary source of funds used to pay life insurance claims. Because most policies are in force for some time before they become payable, insurance companies have premium to invest. The earnings from these investments provide the company to charge fewer premiums. 
  • Expenses: A life insurance policy’s gross premium is calculated as net premium + loading. The net premium depends on mortality rate, investment earnings, and the lapse rate and loading are the company‘s operating costs.

Benefits of Life Insurance Calculator

There are a plethora of benefits of using life insurance calculator. Some of these are as follows.>

  • The life insurance calculator helps the insurance buyers to determine the exact amount of coverage they will need in order to secure the financial future of the family.
  • The life insurance premium calculator tool is user-friendly, easy and efficient financial tool to use. All one need to do is to enter the important details in order to get the required information.
  • By evaluating the results shown by the insurance calculator one can make a comparison between the cost of plan and benefits offered by the policy.

The life insurance premium calculator provides all the data in a jiffy. 

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